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Poster: He Live's Date: Mar 16, 2013 6:30pm
Forum: GratefulDead Subject: Re: Zappa Estate takes interesting business approach

Hey BD! how ya doin??

at a cost of $1000 it is a strange proposition.... i don't think i really grasp it entirely.

But THENm you get to the point i copied below, and i am mystified, i pay 1000 for a license to make legal dupes at my own expense and THEN i still owe you 1.20 for each copy i sell?

if i hypothetically owned 10 (ten) record stores i think i MIGHT be able to sell 30 or 40 copies (at best) of ZAPPA live at the roxy in the next year. of all his albums, i don't think people care too much about that....




How Do I Manufacture the Physical CDs from the Master CD? You may secure your own manufacturer to make copies of the Master CD. Under this approach, you will owe us a mechanical royalty of $1.20 for each CD sold or delivered, payable per the terms of the Distribution Agreement. In the alternative, you may use the Zappa Family Trust’s authorized third party (Barfko-Swill) or manufacturer to make copies of the Master CD. Under this approach, each CD will be provided to you at the wholesale price of eleven dollars plus shipping and handling. On all such sales, the mechanical royalty of $1.20 will be included in the price to you. Further, for any sales of the physical CDs made by the Zappa Family Trust through its Barfko Swill website, we will pay you a royalty based on a percentage of the difference between the retail price and wholesale price as set forth in the terms of the distribution agreement

This post was modified by He Live's on 2013-03-17 01:30:33

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Poster: elbow1126 Date: Mar 17, 2013 5:14am
Forum: GratefulDead Subject: Re: Zappa Estate takes interesting business approach

"But THENm you get to the point i copied below, and i am mystified, i pay 1000 for a license to make legal dupes at my own expense and THEN i still owe you 1.20 for each copy i sell? "

Not for each copy you sell, for each copy you distribute! So if you make copies and gift them to your friends, you owe a buck twenty for each of those too.

What i can't figure is they are arguing that the wholesale cost of a CD is $9.80 plus the royalty. It really costs that much to make a CD duplicate and package it for distribution? That wholesale cost must already have a huge mark up because that sounds like the price you might get for this at a retail level. GDP/Rhino are selling discs at retail for closer to $8/CD. If you were to go that way, you would have to sell a single CD for $15-20 and to break even on your initial investment you would need to sell 250 discs at $15. Good luck.

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Poster: bluedevil Date: Mar 16, 2013 10:59pm
Forum: GratefulDead Subject: Re: Zappa Estate takes interesting business approach

Great - good to see you posting. You might dig this:
http://www.youtube.com/watch?v=nZBlZv1PDR0

And I'm not sure I get how folks will make money other than the Zappa estate as I don't see there will be that much of a market out there, although I do love this era of Zappa. But i am interested to see how this plays out...


This post was modified by bluedevil on 2013-03-17 05:59:07